A brief primer on some of the issues to be watching at this week's BOT meeting:
Barry Fenchak Class of 1984
Candidate for Penn State Board of Trustees
Get your ballot and vote here:
https://trustees.psu.edu/2018election/index.html
I doubt if you will hear anything on these topics from any of the sitting members of the Board - - - but I will try to get to as many of the meetings as possible, and let you know what I see.
_________________________
Preview of some of the impactful issues to be addressed at the February 22/23 Penn State BOT meetings:
1)
It is expected that the Board will rubber-stamp the approval of an $84,500,000 expenditure to REFURBISH three East Hall dormitories.
This is a cost of approximately $187,000 PER ROOM.
Note: This is not the cost for complete new construction – this is the cost to REFURBISH existing dormitories.
It doesn’t take a CPA to question the costs of this project.
2)
The Board is also expected to approve of the expenditure of $148,000,000 for an addition to the Hershey Medical Center.
The addition is expected to be 126,000 square feet – netting a cost of $1,174 per square foot.
Item 3 may be THE MOST IMPORTANT and impactful action of the meeting (but you will probably not hear anything about it):
3)
The following are expected to be added/re-elected to the Board of Penn State Health – an “enterprise” alloyed in with Penn State’s non-profit status, that may soon dwarf the University itself in terms of its importance to many members of the Penn State Board.
Eric J. Barron **
Mark Dambly **
David Gray (PSU Finance & Business Suit)
Keith Masser **
Clifford Benson (Former Appointed Trustee – and proxy for Terry Pegula)
Kathleen Casey **
Dennis Brenckle (Former President of PNC – back when they slept with Penn State, and member of the Hershey Medical Board)
Peter Carlino (Casino Don of Penn National Gaming – and colleague of Ira Lubert, and Benefactor to many “Penn State Interests”, and a member of Hershey Medical Board)
Craig Hillemeier, M.D. (Head of Hershey Medical)
and
Peter Tombros (former pharmaceutical executive, and benefactor of Penn State)
** Current Penn State BOT member.
4)
The Board is expected to approve an increase to Room and Board rates across the University.
Average cost increases to students for 2018 will be approximately 3.0%
The Federal Cost-of-Living increase (the CPI) rose by 2.1% last year.
Since 2000, Penn State’s Room and Board rates have increased by 136%.
Over that same period of time, inflation – as measured by the Federal CPI – has increased by 42%
(that data is available here: https://inflationdata.com/…/Consumer_Pr…/HistoricalCPI.aspx…)
While “small” increases each year may not seem significant, over time, overages of just a percent or two per year compound out to a huge overcharge.
As we see when we look at the figures since 2000.
If Room and Board rates had increased by “only” the level of inflation – current students would be paying $4,400 LESS per year in Room and Board charges.
5)
Alex Hartzler – a Governor Wolf appointee on the Penn State Board, and one of several real estate developers on the Board – is expected to be made a member of the PSU Investment Council.
The Investment Council manages the Penn State Endowment (and other long-term assets of the University), a bundle of approximately $4 Billion dollars:
– the management of which has significantly underperformed similar investments.
Hartzler will join board member Ira Lubert, and Emeriti Trustee Ed Hintz on this Council.
6)
Tony Farah MD is expected to be added to the Hershey Medical Center Board
https://trustees.psu.edu/pdf/february2018agendabotBE.pdf
Barry Fenchak Class of 1984
Candidate for Penn State Board of Trustees
Get your ballot and vote here:
https://trustees.psu.edu/2018election/index.html
I doubt if you will hear anything on these topics from any of the sitting members of the Board - - - but I will try to get to as many of the meetings as possible, and let you know what I see.
_________________________
Preview of some of the impactful issues to be addressed at the February 22/23 Penn State BOT meetings:
1)
It is expected that the Board will rubber-stamp the approval of an $84,500,000 expenditure to REFURBISH three East Hall dormitories.
This is a cost of approximately $187,000 PER ROOM.
Note: This is not the cost for complete new construction – this is the cost to REFURBISH existing dormitories.
It doesn’t take a CPA to question the costs of this project.
2)
The Board is also expected to approve of the expenditure of $148,000,000 for an addition to the Hershey Medical Center.
The addition is expected to be 126,000 square feet – netting a cost of $1,174 per square foot.
Item 3 may be THE MOST IMPORTANT and impactful action of the meeting (but you will probably not hear anything about it):
3)
The following are expected to be added/re-elected to the Board of Penn State Health – an “enterprise” alloyed in with Penn State’s non-profit status, that may soon dwarf the University itself in terms of its importance to many members of the Penn State Board.
Eric J. Barron **
Mark Dambly **
David Gray (PSU Finance & Business Suit)
Keith Masser **
Clifford Benson (Former Appointed Trustee – and proxy for Terry Pegula)
Kathleen Casey **
Dennis Brenckle (Former President of PNC – back when they slept with Penn State, and member of the Hershey Medical Board)
Peter Carlino (Casino Don of Penn National Gaming – and colleague of Ira Lubert, and Benefactor to many “Penn State Interests”, and a member of Hershey Medical Board)
Craig Hillemeier, M.D. (Head of Hershey Medical)
and
Peter Tombros (former pharmaceutical executive, and benefactor of Penn State)
** Current Penn State BOT member.
4)
The Board is expected to approve an increase to Room and Board rates across the University.
Average cost increases to students for 2018 will be approximately 3.0%
The Federal Cost-of-Living increase (the CPI) rose by 2.1% last year.
Since 2000, Penn State’s Room and Board rates have increased by 136%.
Over that same period of time, inflation – as measured by the Federal CPI – has increased by 42%
(that data is available here: https://inflationdata.com/…/Consumer_Pr…/HistoricalCPI.aspx…)
While “small” increases each year may not seem significant, over time, overages of just a percent or two per year compound out to a huge overcharge.
As we see when we look at the figures since 2000.
If Room and Board rates had increased by “only” the level of inflation – current students would be paying $4,400 LESS per year in Room and Board charges.
5)
Alex Hartzler – a Governor Wolf appointee on the Penn State Board, and one of several real estate developers on the Board – is expected to be made a member of the PSU Investment Council.
The Investment Council manages the Penn State Endowment (and other long-term assets of the University), a bundle of approximately $4 Billion dollars:
– the management of which has significantly underperformed similar investments.
Hartzler will join board member Ira Lubert, and Emeriti Trustee Ed Hintz on this Council.
6)
Tony Farah MD is expected to be added to the Hershey Medical Center Board
https://trustees.psu.edu/pdf/february2018agendabotBE.pdf
